Redundancy

WHY GLOVERPRIEST?

We have significant experience of challenging redundancy cases, both pre and post-dismissal. Contact us as soon as you’re placed at risk of redundancy and we’ll support you through the process.

What does “redundancy” mean?

Redundancy is when an employer reduces their workforce because a job or jobs are no longer needed. Redundancy can occur through three types of situations:

• Business closures
• Workplace closures
• Reduction of workforce

As an employee who has been made redundant, or is currently going through the redundancy process, you could be eligible for certain entitlements, including:

• Redundancy pay
• A notice period
• A consultation with your employer
• The option to move into a different job
• Time off to find a new job

 

Alternatives to Redundancy

As part of the overriding requirement for reasonableness, employers are required to consider ways in which redundancies can be avoided. The most common examples are:

• Reduction in working hours
• Ban on over-time 
• Recruitment freeze
• Job sharing
• Short-time working
• Retraining
• Voluntary redundancies.

Notice of Redundancy

The law demands that you receive a proper notice period before being made redundant. These are currently:

• At least a week if you've worked for your employer for between one month and two years
• One week for each year if you've been employed for between two and 12 years
• 12 weeks' notice if you've been employed for 12 years or more. Your employment contract may specify more than this statutory minimum, but it can't specify less. Your contract may also state that your employment can be ended without notice if 'payment in lieu of notice' is given instead. This means that, for example, if you should have received 12 weeks' notice but received none, you would be entitled to 12 weeks' pay, in addition to any redundancy payments that you're owed

Statutory Redundancy Payment

You’ll normally be entitled to statutory redundancy pay if you’re an employee and you’ve been working for your current employer for 2 years or more.
You’ll get:

• Half a week’s pay for each full year you were under 22
• One week’s pay for each full year you were 22 or older, but under 41
• One and half week’s pay for each full year you were 41 or older
• Length of service is capped at 20 years.

If you were made redundant on or after 6 April 2019, your weekly pay is capped at £525 and the maximum statutory redundancy pay you can get is £15,750. If you were made redundant before 6 April 2019, these amounts will be lower.

Calculate your Redundancy pay

Redundancy pay (including any severance pay) under £30,000 is not taxable.
We can advise employees on all areas of redundancy including: your statutory or contractual entitlement to redundancy payment and the calculation of this.

What if my redundancy is unfair?

It’s important to note that your redundancy cannot be based on factors such as your age, gender, disability or if you are pregnant.
In the event that an employer is unable to demonstrate a genuine redundancy and/ or that a fair procedure has been followed, an employee may be able to succeed in a claim for unfair dismissal.